Paul Ryan Calls for Stablecoin Support

Former Speaker of the House Paul Ryan is making headlines again, this time in cryptocurrency. In a recent opinion piece published in the Wall Street Journal, Ryan called upon U.S. lawmakers to promote dollar-backed stablecoins.

He argues that this move will make U.S. debt more attractive in international markets. Ryan believes that adopting stablecoins could fend off the possibility of a failed debt auction, which he claims would "roil markets and severely undermine U.S. credibility."

Ryan's call to action comes as crypto policy plays a significant role in the 2024 Presidential race. Biden administration officials plan to attend a policy roundtable by Representative Ro Khanna (D-CA).

Meanwhile, former President Trump has expressed support for keeping crypto companies onshore. Ryan's advocacy for stablecoins adds another layer of complexity to the ongoing debate.

Ryan's Argument for Stablecoins

Ryan, who now serves on the Policy Council of crypto-focused VC firm Paradigm, presented his case compellingly. He noted that other countries are bolstering their currencies' influence while dumping Treasury debt.

According to Ryan, the U.S. must find new ways to make the dollar more attractive. He stated, "If other countries successfully bolstered their currencies' influence while dumping Treasury debt, the U.S. must find new ways to make the dollar more attractive. Dollar-backed stablecoins are one answer."

Ryan also pointed out that China has embraced digital dollar technology through its e-yuan central bank digital currency.

HSBC China recently became the first foreign bank in the country to offer banking services using the e-yuan. However, as reported by The Block, the currency has struggled to gain popularity with everyday citizens.

The Competitive Landscape

Ryan emphasized the global competitive landscape, stating that the U.S. can't afford to sit idly as its largest international competitor taps latent demand for safe and convenient digital money. He noted that China and Saudi Arabia, who have been large purchasers of American debt in the past, are increasingly looking for options for settling payments outside the dollar system. This shift poses a significant risk to the U.S. financial system and its global standing.

Ryan did not endorse a similar central bank digital currency in the U.S. He stated, "Unlike China's digital financial infrastructure, dollar-backed stablecoins issued on public, permissionless blockchains come packaged with the deeply American values of freedom and openness."

Ryan didn't elaborate on which specific stablecoins he would like to see promoted but made it clear that he believes in the fundamental American values that these stablecoins represent.

A Call for Bipartisan Effort

Ryan closed his opinion piece by calling for a bipartisan effort to craft a sound and predictable regulatory framework for stablecoins in Congress. He wrote, "In an election year, given all the ugly politics to come, we sure could use a win."

This call for bipartisan cooperation highlights the urgency and importance of establishing a clear regulatory framework for stablecoins, especially in the current political climate.

"In an election year, given all the ugly politics to come, we sure could use a win," Ryan wrote.

Ryan's voice adds a significant perspective as the debate over cryptocurrency and stablecoins continues to heat up. His call for a sound regulatory framework could help the U.S. maintain its financial leadership in an increasingly digital world.